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Cement prices rise as
industry enjoying boom in Pakistan
Monitoring Report
CEMENT prices continue to rise in the markets as dealers charge
Rs290-295 per 50 kg bag for Falcon brand as compared to Rs280-285 in
the last week of March, according to Internet. Retailers quoted the
Lucky cement price at Rs275 as compared to Rs260-265. Even the price
of state-owned cement has become costlier at Rs260 as compared to
Rs250 earlier.
Cement prices are gradually getting closer to the Rs300 mark. On
March 3, Falcon cement was priced at Rs260-265 as compared to Rs255
and Lucky Cement at Rs250-255 against Rs240 in the last week of
February. Cement makers are enjoying a business boom for the last
few months as demand has risen after the start of construction
activities, followed by export orders from South Africa, Sri Lanka,
India and the Middle East. India, after importing sizeable
quantities in the last four months, has hinted for more import of
cement from Pakistan.
Since there has been no check on the cement prices during the
interim period before the advent of the new government, the
manufacturers have been active in pushing up the rates almost every
week by Rs5 to Rs10 per 50 kg bag. Cement dealers in various areas
said that they were getting Falcon cement at Rs280 from the company
now as compared to Rs273 a week back and the retailers may charge
Rs10 or Rs15 per 50 kg bag as their profit.They added that cement
prices might further go up as construction activities will pick up
pace in summer season. However, they said that the maker of Falcon
cement took the lead in increasing the rate and the government has
yet to take any action because it is a foreign company.
Other manufacturers will sooner or later follow the suit. Dealers
did not give the exact reason behind the rise but said that there
had been phenomenal increase in exports, especially in the last few
months. Most of the construction activity is, at present in the
residential areas like renovation of houses, adding extra storey and
building a house on the site of demolished structure.
However, there has been very slow demand of cement from the
contractors as many on-going projects had been stopped after change
in the government. A cement maker, who asked not to be named, linked
the cement price hike to rising cost of production owing to increase
in price of imported coal, which now stands at $177 per ton as
compared to $70-72 per ton a year back followed by increase in
furnace oil price, which is being used for power generation
purposes.
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